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Corporation or LLC? Business Organizations for Tech Startups.

YoungUpstarts

Owners of corporations also pay taxes when they are paid dividends or profit from sale of the stock, which is why it is common to say that corporations are “double-taxed.” Stocks are issued at the time the company is formed, and more can be issued over time. Investment and Acquisition Potential. Verdict : LLC.

LLC 100
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Convertible Note Seed Financings: Founders Beware!

Scott Edward Walker

What Happens If a Startup is Acquired Prior to the Note’s Conversion to Shares of Preferred Stock? As discussed in part 1 , in the context of a seed financing, a convertible note is a loan that typically automatically converts into shares of preferred stock upon the closing of a Series A round of financing.

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What is an employee retention or M&A carveout plan?

Startup Company Lawyer

I was speaking at an event last month to a group of CEOs and was surprised by the number of CEOs that were worried about the value of their common stock in a M&A transaction. Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless.

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What is Class F common stock?

Startup Company Lawyer

Super-voting common stock is sometimes seen in companies where founders or a family wish to maintain control of a company after obtaining outside investment. Holders of Class F common stock are allowed to elect one director. Protective provisions.

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Startup Resources

www.vccafe.com

great web customer acquisition tutorials. turn customer feedback into sales and relationships. free, distributed source code control management system. SaaS Sales Team Compensation â?? Preferred Stock Purchase Agreement. Startups For Sale. mixpanel vs kissmetric vs google analytics review. Zendesk â??